(a) In the context of inventory management describe what is an \"Economic Order Quantity\" (E00) is and derive the formula for calculating it stating any relevant assumptions. (6 Madrs) {b} Embleton Ltd currently use 30,000kg (currently costing 2.50 per kg} of a particular raw material every month and their current policy is to place an order for 30,000kg every month. It is estimated that it costs 3 to hold 1kg in inventory for a year and that there is a fixed cost of 600 associated with the placing of every order; (i) How much could Embleton Ltd save by applying the E00 mode]? (6 Madrs) iii) How big a discount would be needed to make it worthwhile placing orders for 40,000kg'? (4 Marks) (iii) Critically appraise the practical considerations of accepting discounts for buying in bull-r. (6 Marks)